China’s central bank has announced it will cut the amount of cash that banks must hold in reserve, unlocking $188 billion in long-term liquidity to shore up slowing economic growth. The People’s Bank of China (PBOC) said on its website on Dec. 6 that it would lower the reserve requirement ratio (RRR) for banks by 0.5 percentage points, effective Dec. 15. This is the second time this year that the PBOC has reduced the reserve requirement, with the announcement coming after Chinese Premier Li Keqiang last week flagged the move as a way to bolster the economy in the face of headwinds. Momentum has slowed in China’s economy in recent months, as it contends with a slowing manufacturing sector, debt problems in the property market, and persistent COVID-19 outbreaks. “The RRR reduction will help alleviate the downward pressure on the economy and smooth the economic growth curve,” Wen Bin, a senior …